AMA Group Limited v ASSK Investments Pty Limited [2021] NSWCA 45

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: AMA Group Limited v ASSK Investments Pty Limited [2021] NSWCA 45 Hearing dates: 16 March 2021 Date of orders: 26 March 2021 Decision date: 26 March 2021 Before: Bell P at [1]; Leeming JA at [74]; Emmett AJA at [75] Decision: 1. Appeal allowed. 2. Set aside the orders of the primary judge and in lieu thereof, order that the proceedings at first instance be dismissed with costs. 3. Direct the parties to file written submissions within 7 days of no more than 3 pages each as to whether or not the Respondent should only be ordered to pay 50% of the Appellant's costs of the appeal. Catchwords: CONTRACT – contractual construction – whether promise in Binding Heads of Agreement (HOA) to enter into Business Sale Agreements was subject to a condition precedent, namely the approval of the Purchaser's Board – whether consideration for HOA illusory – whether condition precedent permitted Purchaser's Board to withhold approval capriciously – whether primary judge's construction accorded with commercial common sense – whether primary judge erred in ordering specific performance of HOA. Legislation Cited: Supreme Court Act 1970 (NSW) s 75A Cases Cited: Antaios Compania Naviera SA v Salen Rederierna AB [1985] AC 191 Australian Broadcasting Commission v Australasian Performing Right Association Limited (1973) 129 CLR 99; [1973] HCA 36 Canada Egg Products Ltd v Canadian Doughnut Co Ltd [1955] 3 DLR 1 Diggle v Ogston Motor Co Ltd [1915] WN 37 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 ET-China.com International Holdings Ltd v Cheung [2021] NSWCA 24 Haegerstrand v Anne Thomas Steamship Co Ltd (1904) 10 Com Cas 67 Haegerstrand v Anne Thomas Steamship Co Ltd (1904) 10 Com Cas 71 HDI Global Specialty SE v Wonkana No. 3 Pty Ltd [2020] NSWCA 296 Masters v Cameron (1954) 91 CLR 353; [1954] HCA 72 McCann v Switzerland Insurance Australia Limited (2000) 203 CLR 579; [2000] HCA 65 Meehan v Jones (1982) 149 CLR 571; [1982] HCA 52 Mount Bruce Mining Pty Limited v Wright Prospecting Pty Limited (2015) 256 CLR 104; [2015] HCA 37 Niarchos (London) Ltd v Shell Tankers Ltd [1961] 2 Lloyd's Rep 496 Pacific Carriers Ltd v BNP Paribas (2004) 218 CLR 451; [2004] HCA 35 Repetto v Friary Steamship Co Ltd (1901) 17 TLR 265 Thorby v Goldberg (1964) 112 CLR 597; [1964] HCA 41 Wilkie v Gordian Runoff Limited (2005) 221 CLR 522; [2005] HCA 17 Zhu v Treasurer of the State of New South Wales (2004) 218 CLR 530; [2004] HCA 56 Texts Cited: JD Heydon, Heydon on Contract (2019, Lawbook Co) P Herzfeld and T Prince, Interpretation (2nd ed, 2020, Thomson Reuters) Category: Principal judgment Parties: AMA Group Limited (Appellant) ASSK Investments Pty Limited (Respondent) Representation: Counsel: M Green SC with M Cobb-Clark (Appellant) M W Young SC (Respondent)